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NISM Certifications · NISM-Series-VI: Depository Operations · Functions of Depository Participant - Account Opening

Ramesh, a resident individual, wants to open a demat account with a depository participant (DP). Under the depository regulations, which of the following statements about the number of accounts he may hold is correct?

An investor may open multiple demat accounts, with the same DP or different DPs, and with either NSDL or CDSL. There is no regulatory limit of one account per person or per depository, so the restrictive statements are incorrect.

  1. AHe may hold only one demat account across all DPs
  2. BHe may open multiple demat accounts, with the same or different DPs, in the same or different depositoriesCorrect
  3. CHe may open accounts only with one depository but with any number of DPs
  4. DHe may hold only one account per depository and no more

Explanation

An investor is free to open more than one demat account, either with the same DP or different DPs, and with either of the two depositories (NSDL and CDSL). There is no regulatory cap of one account per person or per depository. The restrictive options therefore misstate the rule.

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